Author Box
Articles Categories
All Categories
Articles Resources

Cyber Liability and Data Breaches - How to Protect Your Business From Hackers, Viruses and Loss

April 17, 2012 | Comments: 0 | Views: 154

Through the use of social media, cloud computing, email and databases, information can be transferred with a click of a button, and viewed by any number of people around the world in a matter of minutes. This is undoubtedly a quick and relatively cheap method of communicating with customers and marketing your company, until it goes wrong.

Cases of virus attacks, infringement of copyright, defamation or theft of customer and employee data have risen in the last few years, and these types of case continue to appear in the news on a regular basis, especially when the data breach is from a company we all know and trust such as Sony.

Sony Online Entertainment and the PlayStation Network

In April 2011 hackers stole the personal details of around 77 million users of the PlayStation Network, and an additional 25 million from the users of Sony Online Entertainment. This included data such as names, addresses, email addresses, phone numbers, and debit/credit card information. The cost of the investigation, cleanup, insurance and updates was estimated to be around £105 million - not including lawsuits.

However, it is not just huge international companies that experience expensive breaches. The number of attacks on small businesses (fewer than 100 employees) rose from 141 in 2009, to 761 in 2010.

In fact, it is difficult to find any business that isn't at risk of becoming a target, due to them owning at least one of the following:

  • A computer network
  • Option of credit card transactions
  • A database of personal information

And it is not just the risk of being hacked by a virus or a cyber criminal that can cause problems. More and more of us are accessing emails and databases on the move through laptops and smartphones, which can be easily lost meaning sensitive information could be accessed by a member of the public. And even if the data is not abused, the fact the information was lost in the first place counts as a security breach, with a potentially large cost.

  • Facts and Figures
  • The average cost of a data breach in the UK is £1.75 million (2011)
  • 31% of data breaches are due to malicious or criminal attacks
  • Negligent employees or contractors caused 36% of breaches
  • The number of attacks on small businesses (fewer than 100 employees) rose from 141 in 2009, to 761 in 2010

Although it isn't always possible to totally stop these breaches from occurring, it is possible to protect your business from the problems a breach may cause. Cyber Liability Insurance, also referred to as Internet Liability Insurance or Online Liability Insurance, protects against claims arising from:

  • Security breaches
  • Misuse of company email
  • Libellous content on the company website
  • System damage caused by viruses or malware
  • Financial loss caused by internet downtime, or failure of the company website

This provides specialist protection which is often not included in general liability policies, whilst minimising business interruption after a claim and protecting your business financially from costs such as cleanup, security updates and expensive lawsuits.

Contact us today to discuss how your current business insurance could be improved, and for advice on how you can reduce any risks. Please call us on 02380 558200, email or use the contact form on our website

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Cyber Liability


Liability Insurance


Data Breaches


Cyber Liability Insurance


Employee Data



Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 244

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 222

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Manufacturing business is one of the complex business types, which involves complicated business operations that may put the capitals at risk. The challenges faced by the business owners are unique

By: Nate Rodnayl Insurance > Commerciall April 24, 2012 lViews: 181

Cleaning up after a disaster that strikes a business can be time consuming and expensive cost. Most commercial insurance policies offer cover for debris removal and fees for professional advice

By: Dave Healeyl Insurance > Commerciall April 22, 2012 lViews: 171

Unfortunately, risks of litigation are growing steadily, with society now having a new love; prosecuting for the slightest problem. Charities are not immune to this despite their ethical standing.

By: Denise Beresfordl Insurance > Commerciall April 20, 2012 lViews: 162

If you own or lease a shop premises or retail outlet, it essential to have the correct security in place to deter thieves. All insurance companies when offering shop insurance to retailers will

By: Dave Healeyl Insurance > Commerciall April 20, 2012 lViews: 175

If you employ a tradesman to carry out any sort of work on your property it is essential that you check that they have the adquate liability insurance cover in place. Failure to check whether a

By: Dave Healeyl Insurance > Commerciall April 20, 2012 lViews: 214

Business insurance is a form of risk management specifically suited to companies, including sole proprietorships. Business insurance is available in a wide array of formats, including a business

By: Ailene G Bridgesl Insurance > Commerciall April 18, 2012 lViews: 169

Discuss this Article

comments powered by Disqus